Hutchison Port Holdings (HPH) yesterday announced that COSCO Pacific and China Shipping's terminal business are together investing HK$2.5billion (US$320 million) in its Container Terminal 8 West in Hong Kong.
HPH Trust said that it has entered into a strategic partnership with COSCO Pacific and China Shipping Terminal Development (CSTD) through their respective investments of 40% and 20% of effective equity and loan interests in its subsidiary.
One year ago HPH Trust paid HK$3.17 billion (US$408 million) for ACT Holdings, the holding company of Asia Container Terminals, the entity that owns and operates Container Terminal 8 West located at Kwai Chung, Hong Kong.
Gerry Yim, HPH Trust CEO, stated:
This collaboration with COSCO Pacific and CSTD is a significant milestone achievement for HPH Trust that bodes well for the future of ACT, which handled over one million TEU in 2013. This will enhance the city's competitiveness and bolster all aspects of port operations including flexibility, efficiencies, synergies, and profitability.
Wang Xingru, vice chairman and managing director of COSCO Pacific, stated:
I believe that Terminal 8 East and West will form a competitive platform to provide comprehensive and efficient terminal services to our customers. Our investment in ACT will enhance our terminal profitability and further strengthen our presence in Hong Kong, which is one of the major gateways to South China.
Fang Meng, managing director of CSTD, stated:
It extends our geographic presence along China's coastal ports. The single contiguous 1,380-metre berth at Container Terminal 8 will enable us to establish Hong Kong port as a key container shipping hub for the deployment of ultra large containerships, including the 19,000-TEU vessels which are scheduled for delivery in November
The Port of Hong Kong, located by the South China Sea, is a deepwater seaport dominated by trade in containerised manufactured products, and to a lesser extent raw materials and passengers. It is one of the busiest ports in the world, in the three categories of shipping movements, cargo handled and passengers carried.